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Quad Enterprises is considering a new 2-year expansion project that requires an initial fixed asset investment of $5.886 million. The fixed asset will be depreciated
Quad Enterprises is considering a new 2-year expansion project that requires an initial fixed asset investment of $5.886 million. The fixed asset will be depreciated straight-line to zero over its 2-year tax life, after which time it will be worthless. The project is estimated to generate $5,232,000 in annual sales, with costs of $2,092,800. If the tax rate is 25 percent, what is the OCF for this project? Multiple Choice $2,935,643 $3,090,150 $3,139,200 $3,244,658 $147,150
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